Industrial Insights V1 2025 FINAL 4.28.25 - Flipbook - Page 12
A PERFECT STORM
OF HEADWINDS
WHY THE MARKET SOFTENED & DEMAND DRIED UP
While the intentions behind Charleston’s recent development cycle were grounded in real
opportunity, the market’s momentum ultimately collided with a shifting set of economic
and tenant-driven realities. What developers saw in 2020–2022 (accelerating port volumes,
national tenant interest, institutional capital 昀氀ow) was genuine. But timing proved to be the
overlooked variable. By the time millions of square feet of speculative space hit the market
(23’-24’), the demand curve had begun to shift.
12
OVERSUPPLY
TIMING
RISING INTEREST
RATES
Much of the space
delivered in 2023–24 was
speculative. Over 8.7M
SF was delivered in 2024
alone, while absorption
turned negative for the
昀椀rst time in years.
Developers and tenants
alike became more
cautious. Some Build-ToSuit deals were shelved or
delayed due to 昀椀nancing
challenges and abundant
capital dried up.
